There have been some recent signs the domestic economy is managing a slow transition away from the commodities boom particularly in the retail space where a number of companies including Myer, The Reject Shop, Pacific Brands and Premier Investments have reported improved trading conditions. Nevertheless, the upcoming election will likely dampen consumer confidence and the structural issues facing most Australian listed “bricks and mortar” retailers have no easy resolution. Our preferred stocks in this space, Burson Group (ASX:BAP) and Baby Bunting (ASX:BBN), both reported strong results ahead of market expectations. Furthermore, both have future growth strategies underpinned by store roll-out programs. (VIEW LINK)
Robert was appointed Head of Investments in 2009 and has been a Portfolio Manager since joining OC Funds Management in 2001. Robert is also an Executive Director of parent company, Copia Investment Partners.